A robust expansion has been marked in India’s consumption of domestic finished steel, exhibiting an impressive 13% upswing to clock in at 136 million tonnes during the fiscal year 2023-24. This significant increase is underpinned by heightened demand chiefly emanating from the automotive and infrastructure sectors, according to a detailed analysis by SteelMint India.
In stark contrast to the prior financial year of 2022-23, where the consumption figure stood at 120 million tonnes, the current increment delineates a robust trajectory in the nation’s industrial consumption patterns. According to the disseminated report by SteelMint, the main drivers propelling this demand are the automotive industry which saw considerable improvement this financial year, and the expanding emphasis on electric vehicles (EVs). The infrastructure and construction domains have not been far behind, demonstrating a sturdy consumption bolstered by investments—predominantly those sailing on the wind of government-funded development projects.
Parallel to the surge in consumption, the country’s production of crude steel also experienced a notable climb, casting a 12.6% rise to reach 143 million tonnes, a leap from the preceding year’s production volume of 127 million tonnes. This progression is not only notable in the context of raw numbers but also underscores the broader significance it holds under the aegis of the National Steel Policy. The policy’s objectives are ambitiously set on expanding India’s annual steel manufacturing capacity to a colossal 300 million tonnes as well as elevating per capita steel consumption to 160 kg by the end of this decade, 2030.
The upward trend is not an isolated observation but is supported by consistent growth across individual quarters. SteelMint data encapsulates this continuity, highlighting that the January-March period of FY24 alone saw finished steel consumption rise by 6% — totalling 33 million tonnes, a 2 million tonne increase from the corresponding quarter of the previous financial year.
Similarly, the output in crude steel during the same quarter did not lag, registering a noteworthy growth of 12.1%, transcending the previous year’s production by 4 million tonnes to culminate at 37 million tonnes.
The reported upsurge bears testament to the buoyancy of India’s steel sector — a pivotal component of the country’s economic machinery, with its ripples effectuating multidimensional growth impacting various other industries. The automotive sector, which has been a substantial contributor to this demand, is undergoing a transformative shift towards sustainability and innovation with the infusion of electric vehicles into the market, resonating with global environmental concerns and market trends.
Meanwhile, the infrastructure sector’s resilience and perpetual growth are hallmarks of rapid urban development and the constant endeavor to improve the country’s public amenities and services. The government’s financial injections in this sphere showcase a commitment to spearheading large-scale developmental projects that are instrumental in propelling steel consumption.
The data relayed by SteelMint India is a constructive indicator of economic vitality, reflecting the country’s industrial fortitude. As India strides forward with its ambitious National Steel Policy targets, the continued growth in both consumption and production of steel stands as a steel column in the foundation of the nation’s quest for comprehensive industrial and infrastructural development.
